(1) The quota accumulated in the unassigned quota pool will be re-assigned pro-rata to all eligible producers when the unassigned quota pool is equal to or greater than 500 pounds.

(a) For application of (1) the administrator shall determine the total pounds of quota that has been forfeited and accumulated through March 31 either by initial determination (meaning when the quota system began) , or loss of quota.

(b) The resulting pounds in (1) (a) shall be prorated to all eligible producers on the basis of their average daily marketing of milk to all pool plants during the preceding months of September through December and assigned to them as quota effective on May 1st.

(2) Readjustment of quota into the statewide quota system will occur if the Montana market needs exceed the current established total quota.

(3) Market needs are not met when the following conditions exist:

(a) when there is less than 16.5% in class III quota milk; and

(b) when production of class I and class II quota milk has increased from two years prior to the preceding year (when a negative figure results, there will be no readjustment) .

(4) When the statewide quota system needs additional quota added to meet market needs, the administrator shall calculate on or before the first day of April each year the additional quota to be assigned to each eligible producer in accordance with the following computations:

(a) For application of (3) (a) , using the preceding calendar year (January 1 through December 31) , the total class III quota milk is divided by the total quota pounds to determine the percentage of class III quota milk utilized.

(b) For application of (3) (b) , using the preceding calendar year (January 1 through December 31) , compute the total pounds of class I and class II quota milk from all pool plants and subtract the results obtained from (4) (a) .

(c) Take the positive figure resulting from the computation in (4) (b) and divide it by the total days in the year to determine how many pounds of quota will be issued into the statewide quota system.

(d) The resulting pounds in (4) (c) shall be prorated to all eligible producers on the basis of their average daily marketing of milk to all pool plants during the preceding months of September through December and assigned to them as quota effective on May 1st.

(5) Any affected party, not satisfied with the outcome of this rule, may petition the Board of Milk Control for a hearing.